Thailand's International Business Environment and Economic Risks

Thailand has a big profit from tourism; the tourism in Thailand, especially in Phuket economically benefits local people, but the negative impact that tourism leaves on the environment and economy stand out more. Alone in 2016, tourism created 2,313,500 jobs, such as transportation, entertainment, attractions and accommodation’ and is supposed to rise to 2,458,500 jobs in 2107, also “lodging and food and beverage services; retail trade; transportation services; cultural, sports and recreational services”. Thailand has expectations to attract up to 35,527,000 tourists in 2017 (World Travel & Tourism Council 6,8). One of Thailand’s most visited places is Phuket. The economy benefits by having more jobs for local people. And the majority of them work in the new hotel industry business. Others operate souvenir shops or are food producers for local restaurant and hotels. Though, not every local person has the opportunity to get a job, the wealth gap between the local citizens and developers is huge (Impacts

Thailand has been the major exporter of agriculture products in the worlds for decades, but they, also, have been gradually industrializing themselves in recent years. Thailand's international trade has expanded over 600% over the past 20 years. Manufacturing exports hold 86% of the country's total exports as of September 2014 ("BOI: Thailand Investment Review," 2014). Manufacturing industry nowadays has become one the major factors encouraging the economy performance of a country and so as Thailand.

As seen in the graph below you will notice that within the last few years Thailand has experienced a surplus much larger than any before. Their exports have increased rapidly in the more recent years putting their numbers at a record high. This is due to an substantial increase in fuel exports. This data just proves that the second-largest economy in Southeast Asia is gaining traction. As long as they keep the external sector’s performance high then they should continue to see a rise in overall trade surplus.

There are many different economic systems around the world that are tailored to fit the needs of each and every country. Command Economy, Mixed Economy, Market Economy, Traditional Economy and Free Enterprise are a few. These systems help round and establish our world today and create our future.

Thailand is located on the Indochina Peninsula and was named Thailand in 1939. It is 198,117 square miles, about twice the size of Wyoming. Tree-covered mountains cover the northern portion and the southern portion is dense rainforest. The middle land is mostly flat farmland. The weather is mainly hot and humid, only the mountains will get much cold weather, and it only experiences three seasons spring, summer, and fall. Thailand has a population of 68,414,135 and almost half of that lives in rural areas. Those who live in urban areas are commonly located in the largest city and capital, Bangkok. The population is also approximately 95% Buddhist with a small amount of Muslim and Christian. Thailand is a constitutional monarchy, ruled by King Vajiralongkorn and Prime Minister Prayuth Chan-Ocha. The United States

Thailand’s most important exports are tourism and manufactured products. Manufactured products such as: clothing, electronic parts and components, furniture, and jewelry account for 81% of the nation’s export volume. With seven million people going to Thailand each year, tourism accounts for 13% of the country’s total export revenue.

Economic Considerations: Thailand is great developing country because of the smart economic policies but political environment is not stable so there is effect for investors to pay attention much to invest.

Over the last 60 years, tourism has benefited from continuous growth and diversification, becoming one of the largest as well as the fastest growing world’s economic sectors. Tourism becomes one of the major categories of global trade in services. Nowadays, 7% of global goods and services exports are contributed by international tourism, and for the last four years, it has grown faster than the general global trade.[ Exports from international tourism rise 4% in 2015, (2016, May 6). Retrieved from http://media.unwto.org/press-release/2016-05-03/exports-international-tourism-rise-4-2015]

Thailand’s most important exports were manufactured goods. It accounted for 81% of exports. These included clothing, electronic parts and components, furniture and jewelry.

The major industries in the country are the service sector, agriculture, mining, construction, and tourism. Tourism in the nation has been constantly growing over the years. On the contrary, only twenty percent of the country are involved in industry, the rest are focused on agriculture and service. With the tourism boom, people are more likely to join the bandwagon and are less likely to pursue a career in car manufacturing.

Employment opportunities have increased thanks to the tourism sectors. Creating jobs for women and young people, this has contributed to the increase in foreign income, and improves the standards of living for the individual employed in this sector.

The Philippines is still primarily an agricultural country as most citizens still live in rural areas and support themselves through agriculture. The country's agriculture sector is made up of 4 sub-sectors: farming, fisheries, livestock, and forestry (the latter 2 sectors are very small), which together employ 32 percent of the labor force and contribute 11 percent of GDP. The country's main agricultural crops are rice, corn, coconut, sugarcane, bananas, pineapple, coffee, mangoes, tobacco, and abaca (a banana-like plant). The Philippines exports its agricultural products around the world, including the United States, Japan, Europe, and ASEAN countries. Major export products are coconut oil and other coconut products, fruits and vegetables, bananas, and prawns.

Title of Essay: Identify three major political and economic global risks for businesses from the list of twelve discussed in week 16

There are several risk factors that affect Taiwan’s business environment, including economic/financial, environmental and, most importantly, political risks.

Improving the value of exports is the primary goal of Thailand’s international trade policy. The Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) was established as an effective cooperative strategy for gaining market advantages through regional market integration. Thailand aims to capitalize on trade agreements by networking and entering partnership with neighboring countries. Currently, Thailand’s cross-border trade in the Greater Mekong Subregion (GMS) plays a crucial role in globalization, because it facilitates rapid and convenient trade and investment. Countries seek new export markets to disperse the risk of domestic market concentration, as evidenced by the economic recessions affecting